TMI Blog1986 (4) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... " Whether, on the facts and in the circumstances of the case, the assessee was not entitled to the allowance under section 35B of the Income-tax Act in respect of expenditure of Rs. 30,900 for the assessment year 1977-78 ? " In order to appreciate the question referred to us, it is necessary to notice, in the first-instance, the facts as found by the Tribunal. The assessee is a wholly owned Government company of the Government of Karnataka. The assessee has been incorporated, inter alia, with the primary object of carrying on business " to aid, counsel, assist, finance, protect and promote the interests of small industries in Karnataka, whether owned or run by the Government, a statutory body, a company, firm or an individual, or to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he expenditure incurred by his client was for carrying on the business activities stipulated in its memorandum of association and the same was entitled to be allowed " weighted deduction " under section 35B(1)(i) of the Act. Sri K. Srinivasan, learned senior standing counsel for the Income-tax Department, appearing for the Revenue, contends that the expenditure incurred by the assessee was not in the course of export promotion of the business of the assessee and, therefore, it was not entitled to claim" weighted deduction " under the Act. We have earlier noticed the principal object with which the assessee had been incorporated and is carrying on its business. The objects of the assessee's business do not enable it to undertake export ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plain language of the section. The heading of the section states that it regulates " export markets development allowance " as elaborately set out in that section. The main section, viz., section 35B(1)(a), enumerates the persons qualified to claim the allowance, the period during which the same can be claimed and the nature of expenditure on which the same can be claimed. Then the said Section that follows, viz., section 35B(1)(b), enumerates the expenditure on which the allowance of weighted deduction, as it is called, can be allowed. Even according to the assessee, its case attracts section 35B(1)(b)(i) of the Act only and not any other clause. But the very clause on which the assessee relies stipulates that the same should be in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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